A university spent $$1\mathrm{.}8$ million to install solar panels atop a parking garage. These panels will have a capacity of $)$ and have a life

expectancy of $20$ years. Suppose that the discount rate is $10\%,$ that electricity can be purchased at $$0\mathrm{.}30$ per kilowatt$-$hour $($kWh$),$ and that the

marginal cost of electricity production using the solar panels is zero.

Hint: It may be easier to think of the present value of operating the solar panels for $1$ hour per year first.

Approximately how many hours per year will the solar panels need to operate to enable this project to break even?

A$.)1,096\mathrm{.}28$

$B.$

If the solar panels can operate only for $705$ hours a year at maximum, the project $($A$.)$ WOULD OR B$.)$ WOULD NOT$)$ brake even.

Continue to assume that the solar panels can operate only for $705$ hours a year at maximum.

In order for the project to be worthwhile $($i$.$e$.,$ at least break even$),$ the university would need a grant of at least

A$.)$ $$161,500\mathrm{.}03$

B$.)$ $$89,722\mathrm{.}35$

C$.)$ $$179,444\mathrm{.}70$

D$.)$ $$269,167\mathrm{.}05$